As kimchi becomes more expensive in overseas markets due to local supply shortages this autumn, Chinese producers are well-positioned to capitalize on the situation.
Known for their high-quality and competitively priced products, Chinese kimchi has gained considerable popularity among overseas consumers, especially in South Korea. More than half of the South Korea's kimchi sourced from Qingdao City of east China's Shandong Province, with the county-level city Pingdu in Qingdao as a critical export hub.
To accommodate the surge in orders, processing facilities in Pingdu are ramping up operations. One company reports that its automated production lines are operating at full capacity, generating over 100 tons of kimchi daily, with more than 80 percent of that output earmarked for international markets.
"Since September, we have seen an explosive growth in orders. Orders from countries like South Korea, Thailand, and Singapore have surged, with South Korean orders making up 70 percent of our total volume. And export prices have risen compared to last year," said Li Ping, sales director of the food company.
The recent surge in kimchi prices can be attributed to a decrease in cabbage production, prompting Chinese companies to enhance their processing capabilities to fulfill the growing demand.
"This year, the supply of cabbage has been severely impacted by weather conditions, leading to difficulties in harvesting cabbage in many areas and challenges in planting winter storage cabbage, which has significantly reduced cabbage availability. Additionally, kimchi made from autumn and winter cabbage tends to be crunchier and sweeter. Taking all these factors into account, both kimchi prices and order volumes have increased compared to previous years," Li explained.
Currently, Qingdao is home to over 20 substantial kimchi processing enterprises. In the first eight months of this year, the city exported 173,000 tons of kimchi, marking an over 12 percent increase year on year. Expectations are high that this year's exports to South Korea will reach 300,000 tons.
Chinese kimchi producers ramp up output as overseas demand soars
